CEO CommentPerry A. Sook, Chairman, President and Chief
Executive Officer of Nexstar Broadcasting Group, Inc. commented,
“Nexstar’s long-term strategy to complete and integrate accretive
acquisitions while building complementary revenue streams that leverage
our local content and relationships drove record second quarter net
revenue, BCF, adjusted EBITDA and free cash flow. Our year-to-date
financial results are in-line with our expectations and we remain
confident that Nexstar will generate record free cash flow in 2014 based
on core advertising trends and rising political spending in the second
half of the year, contractual retransmission revenue growth and our
expanded digital media operations. In addition, later this year we
expect to close pending transactions which will result in the addition
of 27 stations and benefit operating results in late 2014 and beyond.

“Our 16.4% rise in second quarter net revenue generated 17.8% growth in
BCF, a 15.5% increase in adjusted EBITDA, and a 48.5% rise in free cash
flow. During the second quarter, television ad revenue inclusive of
political advertising rose 6.3% with core local and national spot
revenue increasing 1.3%, including a 4.0% rise in same station
automotive advertising and year-over-year increases in six of our top
ten categories. Reflecting our expanded platform and presence in states
with high levels of political spending activity, 2014 second quarter
political revenue rose by 270% compared to the same period last year and
by 12.8% over comparable 2012 second quarter levels.

“While political ad spending in our markets will accelerate in the
second half of 2014, Nexstar’s gross revenue growth in the second
quarter excluding political was healthy at just over 12% and reflects
the 40.3% rise in retransmission fee revenue and 72.8% increase in
digital media revenue. Recently renegotiated retransmission consent
agreements combined with the growth of our digital publishing platform
and digital agency services offerings resulted in a 47.9% increase in
Nexstar’s total second quarter retransmission fee and digital media
revenue to $48.2 million. Consistent with our revenue diversification
objectives, these higher margin revenue streams accounted for 32.8% of
2014 second quarter net revenue up from 25.8% in the comparable period
last year and 22.2% in the 2012 second quarter, the last political cycle.

“Looking forward, with distribution agreements representing over 40% of
Nexstar’s subscribers up for renewal in 2014, we project ongoing
significant revenue growth from this source in the remainder of 2014 and
beyond. In addition, digital media revenue growth in the second half of
2014 will benefit from the second quarter accretive acquisitions of
Internet Broadcasting Systems, a digital publishing platform and digital
agency services provider as well as cloud-based content management
solutions provider Enterprise Technology Group (“ETG”). These strategic
additions to Nexstar’s existing digital platform and agency capabilities
have enabled us to expand the range of best of breed content publishing
and monetization tools that we offer to power our clients’ digital media
businesses and have expanded Nexstar’s digital business portfolio to
over $50 million in annual run rate revenues.

“During the second quarter, Nexstar remained active in executing its
long-term strategy to complete accretive transactions that expand our
operating and revenue base to drive free cash flow growth. In this
regard, we completed the acquisition of five television stations in two
markets for $35.0 million which follows the completion in the first
quarter of three stations in three markets for $87.9 million.

“Throughout our history, Nexstar’s organization-wide commitment to
broadcasting excellence for local viewers and unparalleled marketing
results for our advertisers has been integral to our success and growth.
Reflecting this commitment, Nexstar and Mission Broadcasting, Inc.
stations have garnered over 340 broadcasting awards over the past five
years. We’ve also been market leaders in addressing diversity in
programming and the unique needs of the communities where we operate.
During the second quarter, Nexstar initiated a transaction to promote
diversity of media ownership among minority operators through the sale
and post-transaction operational support of three network affiliated
stations in three markets to a minority controlled media company. We
believe the proposed transaction presents an innovative framework for
introducing and developing a new, minority-controlled entrant to
broadcasting, and for bringing additional news, information and
specialized programming to the Shreveport, LA, Odessa-Midland, TX and
Quad Cities, IA markets. This transaction is contingent upon closing
other pending transactions which we expect to complete later this year.

“With our focus on generating free cash flow, we remain disciplined in
managing costs and in addressing our capital structure, leverage and
cost of capital. The rise in second quarter station direct operating
expenses (net of trade expense) and SG&A primarily reflects higher
variable costs related to the higher core and political revenues and the
operation of acquired stations and digital assets. The second quarter
corporate expense was slightly ahead of our expectations and reflects
approximately $0.7 million of one-time expenses related to legal and
professional fees for acquisitions and related initiatives.

“With the addition of eight new stations in 2014 to date and
expectations that we will complete all other announced transactions by
year-end which will result in the net addition of 27 more stations,
Nexstar would generate pro-forma free cash flow in excess of $350
million during the 2014/2015 cycle, or average pro-forma free cash flow
of approximately $5.85 per share per year. Our current operations alone
are pacing to generate blended free cash flow of approximately $4.50 per
share per year in the current 2014/2015 period and with the free cash
flow generated from this base of operations, we project that Nexstar’s
net leverage will decline to approximately 3.8x at the end of 2014.

The consolidated total debt of Nexstar, its wholly owned subsidiaries,
and Mission (collectively, the “Company”) at June 30, 2014, was $1,088.4
million and senior secured debt was $562.8 million. The Company’s total
net leverage ratio at June 30, 2014 was 5.35x compared to a total
permitted leverage covenant of 7.25x. The Company’s first lien net
leverage ratio at June 30, 2014 was 2.69x compared to the covenant
maximum of 4.00x.

The table below summarizes the Company’s debt obligations:

($ in millions)

6/30/2014

12/31/2013

First Lien Term Loans

$

562.8

$

545.4

6.875% Senior Notes due 2020

$

525.6

$

525.7

Total Debt

$

1,088.4

$

1,071.1

Cash on hand

$

32.1

$

40.0

DividendsOn July 25, 2014 the Board of Directors declared a
quarterly cash dividend of $0.15 per share of its Class A common stock
which will be paid on August 29, 2014 to shareholders of record on
August 15, 2014.

Second Quarter Conference CallNexstar will host a
conference call at 10:00 a.m. ET today. Senior management will discuss
the financial results and host a question and answer session. The dial
in number for the audio conference call is 719/325-2435, conference ID
6333592 (domestic and international callers). In addition, a live audio
webcast of the call will be accessible to the public on Nexstar’s web
site, www.nexstar.tv
and a recording of the webcast will be archived on the site for 90 days
following the live event.

Broadcast cash flow, adjusted EBITDA and free cash flow results are
non-GAAP financial measures. Nexstar believes the presentation of these
non-GAAP measures are useful to investors because they are used by
lenders to measure the Company’s ability to service debt; by industry
analysts to determine the market value of stations and their operating
performance; by management to identify the cash available to service
debt, make strategic acquisitions and investments, maintain capital
assets and fund ongoing operations and working capital needs; and,
because they reflect the most up-to-date operating results of the
stations inclusive of pending acquisitions, TBAs or LMAs. Management
believes they also provide an additional basis from which investors can
establish forecasts and valuations for the Company’s business.

For a reconciliation of these non-GAAP financial measurements to the
GAAP financial results cited in this news announcement, please see the
supplemental tables at the end of this release.

About Nexstar Broadcasting Group, Inc.Nexstar Broadcasting
Group is a leading diversified media company that leverages localism to
bring new services and value to consumers and advertisers through its
traditional media, digital and mobile media platforms. Nexstar owns,
operates, programs or provides sales and other services to 80 television
stations and 20 related digital multicast signals reaching 46 markets or
approximately 13.1% of all U.S. television households. Nexstar’s
portfolio includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV, The
CW, Telemundo, Bounce TV, Me-TV, Live Well, LATV and an independent
station. Nexstar’s 48 community portal websites offer additional
hyper-local content and verticals for consumers and advertisers,
allowing audiences to choose where, when and how they access content
while creating new revenue opportunities.

Pro-forma for the completion of all announced transactions Nexstar will
own, operate, program or provides sales and other services to 107
television stations and related digital multicast signals reaching 56
markets or approximately 16.0% of all U.S. television households.

Forward-Looking StatementsThis news release includes
forward-looking statements. We have based these forward-looking
statements on our current expectations and projections about future
events. Forward-looking statements include information preceded by,
followed by, or that includes the words "guidance," "believes,"
"expects," "anticipates," "could," or similar expressions. For these
statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The forward-looking statements contained
in this news release, concerning, among other things, changes in net
revenue, cash flow and operating expenses, involve risks and
uncertainties, and are subject to change based on various important
factors, including the impact of changes in national and regional
economies, our ability to service and refinance our outstanding debt,
successful integration of acquired television stations (including
achievement of synergies and cost reductions), pricing fluctuations in
local and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from others in
the broadcast television markets served by the Company, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments and
major world news events. Unless required by law, we undertake no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking events
discussed in this news release might not occur. You should not place
undue reliance on these forward-looking statements, which speak only as
of the date of this release. For more details on factors that could
affect these expectations, please see our filings with the Securities
and Exchange Commission.